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Should Fannie Be a Housekeeper?

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Yesterday Crain's reported on a developing controversy that could potentially play out in more rent-stabilized portfolios snatched up for exorbitant sums of money during the boom. In 2007, Urban American Management paid $918 million for five rent-regulated complexes in Manhattan and Roosevelt Island (the previous owner paid just $295 million in 2005). Tenants say there's been a steady decline in services and maintenance, and since protests against their landlord have done nothing, now they're going after Fannie Mae, which bought the debt on the $700 million loan from Deutsche Bank. Do those that own the loans have a responsibility to make sure their buildings stay in good shape? [Crain's]